One in Five U.S. Employers to Slow Hiring in Second Half of 2025

A significant shift in U.S. hiring plans is underway, with one in five employers intending to slow hiring in the second half of 2025, according to a recent survey by The Conference Board. This figure represents nearly double the rate of companies that anticipated a similar pullback just one year ago, signaling a more cautious approach to workforce expansion. The Wall Street Journal highlighted this development, stating, > "One in five U.S. employers surveyed by the Conference Board plans to slow hiring in the second half of 2025."

The findings stem from The Conference Board's CHRO (Chief Human Resource Officer) Confidence Index, which measured 54 in the second quarter, a decrease from 59 in the same period last year. This marks the second consecutive year that chief human resource officers are planning fewer new hires, a stark contrast to mid-2023 when over half expected to increase staff. Diana Scott, Leader of The Conference Board's U.S. Human Capital Center, noted that hiring managers are "taking a more thoughtful, steady approach as economic and policy uncertainty lingers."

Several factors are contributing to this hiring deceleration. Lingering economic uncertainty, including concerns about consumer spending and a general slowdown in job growth, is prompting caution among businesses. Additionally, the impact of tariffs, particularly those related to the Trump administration's policies, has weighed on sectors like manufacturing and retail, leading to increased operating costs and reduced hiring.

The accelerating adoption of artificial intelligence (AI) is also playing a crucial role in the shift. Companies are increasingly leveraging AI to enhance efficiency and productivity, leading to a reduced need for backfilling certain positions. Andrew Challenger, a senior vice president at outplacement firm Challenger, Gray & Christmas, indicated that AI has been linked to over 10,000 job cuts in July alone, becoming a top driver of workforce reductions.

This strategic pivot means companies are focusing on strengthening existing teams and doing "more with the teams we have today," as stated by Karim Rayes, Chief Product Officer at advertising tech firm Nexxen International. The broader labor market is showing signs of cooling, with job growth decelerating and the average time it takes for a worker to find new employment increasing to 24 weeks. Employers are also investing more in change management training for leaders, preparing their organizations for ongoing shifts rather than rapid expansion.